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The UK and most of the world's economies are increasingly unsustainable, unfair and unstable. It is not even making us any happier – many of the richest countries in the world do not have the highest wellbeing.

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Policies for a zero-growth economy

Duncan Green, Head of Research at Oxfam GB, has written a blog criticising a recent event on Rethinking economic growth(also see my blog on it) which nef supported
last month. He obviously agrees with the alarm call (that growth is
not sustainable) – you can see that in his presentation of his to the
Quakers Zero Growth Economy conference
last year. But Duncan seems to expect solutions to these problems
already and was disappointed at the scarcity of them at this event.

I shan’t attempt to stand up for all the speakers, but I would suggest that two of their publications at least (Tim Jackson’s Prosperity without Growth and nef’s Great Transition)
do start to touch on some of the solutions to what is very admittedly a
difficult problem. André Reichel’s suggestions for companies that do
not require constant throughput of material production were also real
practical solutions. Here are three parts of the solution. Just three:

Steadily reducing working hours. Increases in labour productivity
have typically meant that economic growth is required to keep steady
employment. If productivity gains were taken as more free time, this
would resolve this challenge. Take a look at our new report, 21 hours.

Re-structured ownership. An economy dominated by shareholders who
only take a stake in firms so as to make a quick profit is driven
relentlessly to growth (see the work of Mathias Binswanger
on this). It doesn’t have to be like this. Many forms of ownership,
including small family businesses, co-operatives, communities, and the
state, are not predicated on ever increasing returns on investment.

Re-focussing measurement. Of course I mention that partly because at the centre for well-being we’ve been working on alternative measures of progress such as the Happy Planet Index
and how they might help shift us away from the folly of the constant
pursuit of growth. But also, Duncan himself has highlighted this as a
key part of the shift away from a growth focussed economy.

Of course, these three solutions alone won’t solve all the world’s
problems, and of course there are many interests who would oppose such
changes, but they’re a start. More research is needed to better
understand how a no-growth economy would work. And more advocacy is
needed to promote the ideas around a stable economy. But until
recently, this is not been something that big money was likely to get
behind. However, things are beginning to change and there are signs of
some forward thinking governments starting to invest in exploring
alternatives to growth. Maybe then we’ll be able to have a few more
answers for the man from Oxfam.